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  • Entry-and-Exit-Barriers 1

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    Suman Mandal
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    Barriers to entry and exit impact competition in an industry. Barriers to entry block companies from entering an industry, allowing existing competitors to enjoy profitability with limited rivalry. Industries easy to enter see more companies join during profitable periods, increasing rivalry. Barriers to exit also increase rivalry by blocking companies from leaving an industry.

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    Barriers to entry and exit impact competition in an industry. Barriers to entry block companies from entering an industry, allowing existing competitors to enjoy profitability with limited rivalry. Industries easy to enter see more companies join during profitable periods, increasing rivalry. Barriers to exit also increase rivalry by blocking companies from leaving an industry.

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    5 views1 page

    Entry-and-Exit-Barriers 1

    Uploaded by

    Suman Mandal
    Barriers to entry and exit impact competition in an industry. Barriers to entry block companies from entering an industry, allowing existing competitors to enjoy profitability with limited rivalry. Industries easy to enter see more companies join during profitable periods, increasing rivalry. Barriers to exit also increase rivalry by blocking companies from leaving an industry.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 1

    Barriers to Entry? Barriers to Exi1t?

    A barri,er to entry is something that blocks or impedes


    A barrier to exit is something that blocks or impedes the
    the ability of a company (competitor) to enter an industry.
    ability of a company (competitor) to leave an industry

    In general industries that are difficult for new competitors to enter may enjoy periods of good profitability and limited riivalry among competitors.
    Conversely, industries that are easy to enter attract new companies into the industry during periods of profitability. So, rivatry among competitors
    can be intense. On the other end. industries that are difficult to exit have more rivafiy than industries that are easy to !eave.

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